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1、August 2021Careers of Tomorrow:Financial Talents in the Digital,Sustainable Economy of Hong KongFSDC Paper No.50ContentsExecutive SummaryIntroduction How Did We Gather Stakeholders Views?Literature review as the backbone Understand employment trends and expectations through in-depth interviews and f
2、ocus group meetings Gauge employees perspective through survey with tertiary institution students and incumbent practitionersHow Will the Industry and Its Employment Market Be Like?Global competition for talents with cross-disciplinary expertise Hong Kong:positive outlook but retaining talent is a c
3、hallenge Deeper-dive:Current State and Outlook in Asset&Wealth Management(AWM)Off-the-job training is sufficient but less so for on-the-job What Will Fintech Mean to Employers and Employees?Technology is globally an inseparable part of financial services Hong Kong:clearer industry positioning and ta
4、lent needs Deeper-dive:application of Fintech in AWM sector Training landscape:application is key What Will ESG Mean to Employers and Employees?Sustainability is relevant and becoming mainstream Hong Kong:momentum is piling up and more employers are getting ready to expand ESG roles Deeper-dive:appl
5、ication of ESG in AWM sector Understanding among practitioners has room to improve Recommendations:Groom,Retain and AttractConclusion Annex 1 Key Segments and Activities in Fintech Annex 2 Key Segments and Activities in ESG Annex 3 Summary of Key Findings in Literature Review 136 6 7 78 9 9 14 1518
6、19 19 25 2830 31 31 34 353846485254Executive SummaryDigitalisation,pandemic,geopolitical uncertainty,changing perceptions of clients and others are leading financial institutions to reconsider their business models and priorities.Two emerging trends financial technology(Fintech)and environmental,soc
7、ial,governance(ESG)are rising to the top of the agenda for various stakeholders and market participants in Hong Kong.The Financial Services Development Council(FSDC)is pleased to note that,not long before the publication of this paper,the Hong Kong Monetary Authority(HKMA)unveiled its“Fintech 2025”s
8、trategy on 08 June1,laying out five focus areas to take the local Fintech landscape to the next level of development,among which“expanding the Fintech-savvy workforce”has been identified as a key element.It is said that the HKMA will collaborate with strategic partners through various initiatives,in
9、cluding developing Fintech-specific training programmes and qualifications,as well as promoting joint projects between the industry and academia.On the ESG front,the Green and Sustainable Finance Cross-Agency Steering Group announced on 15 July the next steps2 to take forward the development of ESG
10、in Hong Kong,including the launch of the Centre for Green and Sustainable Finance,which will serve as a“cross-sector platform which coordinates the efforts of financial regulators,Government agencies,industry stakeholders and academia in capacity building,thought leadership and policy development”.S
11、uch initiatives are timely in echoing the private sectors effort to further embrace and integrate ESG and Fintech into their business strategies.While attention appears to be placed more on the business operation implications than on talent development in the past,a majority of financial institution
12、s agree that they will need more talent around Fintech and ESG in the coming three years.However,the reality is,at the moment only the larger players have come up with a more concrete blueprint as to what skillset they as employers are looking for from the incumbent and potential employees;and as to
13、 how to make sure the overall capabilities of their workforce will remain relevant and competitive.Sharing the vision that ESG and Fintech are two of the prominent trends reshaping the future of financial services,the FSDC has prepared this paper with a view to calling for concerted efforts by stake
14、holders to advance Hong Kongs talent strategy collectively.Leveraging the gem of the literature review,the FSDC drew some key observations regarding talent development in Fintech and ESG.With these,we have then conducted a series of one-on-one interviews as well as focus group meetings with C-suites
15、 and senior management of different types of financial institutions;representatives of industry associations and professional bodies;and human resources management(HR)leaders of financial institutions and seasoned recruiters to understand the skillset that employers are looking for now and in the co
16、ming three years.We also conducted a survey with a total of 400 tertiary institution students and incumbent industry practitioners to gauge whether the financial services industry remains appealing to them and whether they find themselves ready for the current and near future industry landscape.Over
17、all,both employers and employees remain optimistic about the prospect of Hong Kong and its financial services industry.Both Hong Kong and its homegrown talents need to be mindful of the competition though.For Hong Kong,the uncertain economic outlook and high cost of living would potentially affect i
18、ts attractiveness to non-local talents;as for homegrown talents,if their breadth of knowledge,innovativeness,and motivation for success are not enhanced,they could become less competitive even though they have been long cherished for their prudence,trustworthiness and depth in sector knowledge.Hong
19、Kong Monetary Authority,Press release-The HKMA Unveils“Fintech 2025”Strategy,June 2021.Hong Kong Monetary Authority,Press release-Cross-Agency Steering Group announces next steps to advance Hong Kongs green and sustainable finance strategy,July 2021.121Between the two emerging trends,Fintech is comp
20、aratively better known and prepared than ESG among financial institutions in Hong Kong.In terms of Fintech,financial institutions large and small,and in different sectors are taking their pace to embrace digitalisation.For example,asset management firms are generally adopting technology in aspects s
21、uch as enhancing client user-experience,product formulation,data analytics,business efficiency and accuracy,and in some cases,alpha generation.Both employers and employees recognise the importance of tech savviness and have commonly identified big data,cybersecurity and digital marketing as the key
22、trends to note.Some misconceptions need to be corrected though for smoother development of the Fintech ecosystem:some employees remain to think Fintech is only about programming/coding;they also tend to have less-than-realistic expectation on salary.Also,most Fintech employers highlight the vitality
23、 of application on-the-job element and real-life scenario practice should be added to the training modules.ESG for now is more of a concept understood by larger firms,although most financial institutions of different sizes agree that it will become a mainstream that cannot be understated.Almost half
24、 of the firms interviewed are still in the learning process about the essence and value proposition of sustainability.Partly due to the lack of a global taxonomy,a few employers and quite some employees find themselves lacking sufficient understanding of ESG.Indeed,the larger groups in the banking a
25、nd asset and wealth management sectors are proactively moving towards ESG employment in roles related to investment management,reporting and disclosure,research and strategy.Dedicated teams have been formed and are adding new headcounts,despite the overall gloomy economic outlook.Knowledge of ESG re
26、gulations and integrated analysis will be crucial and more training efforts both at the tertiary education and professional training levels are demanded.Based on the findings derived from these stakeholder engagements,this paper closes with the following policy recommendations for the Governments an
27、d other stakeholders consideration To develop and update the core competency map for different sectors;To coordinate and evaluate internship and apprenticeship programmes;To facilitate Hong Kong professionals overseas and Mainland placement through subsidy support;To incentivise private Fintech ente
28、rprises to participate in curriculum development and application;To introduce ESG courses as compulsory learning in finance-related disciplines;andTo expand CEF reimbursable courses to cover more professional training in Fintech and ESG.i.ii.iii.iv.v.vi.2Digitalisation,pandemic,geopolitical uncertai
29、nty,changing perceptions of clients and others are leading financial institutions to reconsider their business models and priorities.Of which,as the two emerging trends Fintech and ESG are becoming mainstream,financial institutions in Hong Kong are pondering on whether their incumbent professionals
30、and the upcoming breeds of talents are ready to survive and thrive in this new world of economy.With plenty of discussions around what Fintech and ESG are and what they could mean,the financial services industry appears to be still on the learning curve regarding the implications and impacts of the
31、adoption of technology and sustainability.Meanwhile,incumbent financial professionals and potential talents are rolling up their sleeves for the new opportunities brought about by ESG and Fintech,or digitalisation at large.While the Fintech and ESG landscapes are rapidly evolving,we intend to set ou
32、t,in principle,the key segments and activities of these two streams within financial services so as to place employers and employees on the same page.With Fintech and ESG being relatively new subjects,successfully articulating their definitions can provide clarity and reference for employers and emp
33、loyees to navigate the multiple definitions that are available on the market.Introduction3Some areas of FintechRobo-advisorMicro-InvestingOther applicationsof WealthTechFinancial Research and DataInstitutional InvestingRetail InvestingBankingInfrastructureConsumer andCommercial BankingDigital bankin
34、g/Virtual Banking FinTech balancesheet lendingBusiness Lending/Consumer LendingP2P lendingCrowdfunding Insurtech Customer informationplatformsInsurance intelligence/backend infrastructure P2P InsuranceDigital payment servicese-MoneyFinancial Transaction SecurityInternational Money TransferRisk manag
35、ementIdentity management-KYC(Know Your Customer)and AML(Anti-Money Laundering)solutionsTrade and other types of transaction monitoringRegulatory reporting and compliance Asset tokenizationDigital asset/cryptocurrency exchange Trade financeCross-boundarypaymentsDigital assetcustodian ServiceFor diffe
36、rent types financial institutions(bank,asset management firms,insurance firms,etc.)and financial services(e.g.,risk management,payment,etc.)Data and analytics FinancialSoftwareInsuranceInvestmentManagementRegTechPayments,Clearing andSettlementAsset and WealthManagement(“WealthTech”)BankOperationsOth
37、er depositand lendingactivities CapitalRaisingBlockchain/DistributedLedgerTechnologySee Annex 1 for more detailed definitionsFinTech 4Some areas of ESGWhy Asset and Wealth ManagementEquity investment Fund(ETFs,mutual funds,etc.)investment Investment in other financial productsESG ratingESG research
38、and analysisESG index publishingImpact investingReporting analysis/consultancyESG AssuranceSustainablefinanceLendingBond issuanceSustainableinvestmentESGImpactinvestingESGanalyticsESGdisclosure/reporting To help employers and employees better visualise how Fintech and ESG can be translated into prac
39、tice in the human capital development process of the financial services industry,this paper will feature the Asset and Wealth Management sector,amongst others,as a major case study.The Asset and Wealth Management sector has increasing growth potential in Hong Kong from client base to the product var
40、iety.In terms of clientele,asset and wealth managers traditionally tailored high net worth individuals and corporates and have now extended their services to clients such as private trusts and non-professional investors(including retail investors).In terms of products,traditional managers in Hong Ko
41、ng generally cover assets such as equities,bonds,cash and money markets,etc.;as alternative investment evolves,managers cover assets other than traditional asset classes common alternative investments include hedge fund,private equity,commodities and real estates.All these transformations are necess
42、arily leading to asset and wealth managers changing,and potentially additional,demand for talents.See Annex 2 for more detailed definitions5How Did We Gather Stakeholders Views?Key trendsLiterature review of20+talent development studies of Hong Kong,Mainland China and overseasEmployees perspectiveSu
43、rvey questionnaire answered by200tertiary institution students in Hong Kong across different majors200incumbent practitioners in Hong Kongs financial services industryEmployers perspectiveOne-on-one interviews and focus group meetings with20+C-suites and senior management of financial institutions10
44、+representatives of industry associations and professional bodies 10+HR leaders of financial institutions and seasoned recruitersLiterature review as the backboneOver the years,there have been a swathe of talent trend studies prepared by the public sector and private organisations for Hong Kong,Main
45、land China and abroad.These studies provide key observations and serve as important references for the planning of talent strategy on a corporate level,on an industry level,or even more broadly for an economy.With no intention to reinvent the wheel,we started our study by conducting a literature rev
46、iew to learn from the insights.Among some 20 studies reviewed in depth,a large majority adopted a qualitative approach by gauging feedback from financial institutions and industry practitioners from around the world through interviews and surveys.Over half of the studies focused on skill gaps to fil
47、l.Key observations derived from these studies form the backbone of our research,helping to shape whether and,if so,how certain employment trends apply to the context of Hong Kong and its financial services industry.6Interviews and focus group meetings were conducted between October 2020 and January
48、2021 by the FSDC Policy Research Team together with an independent market consultancy company.C-suites and senior management of financial institutions with a diversity of backgrounds(Hong Kong,Mainland,multinational),sizes(500+,250-499,50-249,50 employees)and sectors(banking,asset and wealth managem
49、ent,insurance,securities,fintech start-ups,etc.)Survey data collection started in November and ended in December 2020.The online self-completion survey was responded by 200 financial services industry practitioners in Hong Kong(with 1-3,4-6,and 7 or more years of working experience across front,midd
50、le and back offices of financial institutions of different sectors)and 200 tertiary institution students who are interested in joining the industry(majoring in different disciplines at doctorate,masters,bachelor and sub-degree levels).345Understand employment trends and expectations through in-depth
51、 interviews and focus group meetings Leveraging the key observations derived from the literature review,we conducted a series of one-on-one in-depth interviews and focus group meetings3 with Gauge employees perspective through survey with tertiary institution students and incumbent practitionersWe b
52、elieve it is equally crucial to ascertain(potential and incumbent)employees perspective,especially in terms of whether the financial services industry remains appealing to them and whether they find themselves ready for the current and near future industry landscape.In this connection,we have engage
53、d an independent market consultancy company to survey a total of 400 tertiary institution students and incumbent industry practitioners,who responded on an anonymous basis.5 24 C-suites and senior management of financial institutions4,13 representatives of industry associations and professional bodi
54、es,as well as 11 HR leaders of financial institutions and seasoned recruiters/headhunters to understand the skillset that employers are looking for now and in the coming three years.(i)(ii)(iii)7How Will the Industry and Its Employment Market Be Like?Talents in Hong Kong whether homegrown or from Ma
55、inland and overseas are highly competitivePrudent,trustworthy and depth in sector knowledge are key qualities Hong Kong talents possessWhat Employers&Employees think in commonMore fast-changing than ever and will require cross-disciplinary expertiseTraining as an investment in human capital,rather t
56、han an expenseGaps to fillParticularly for entry and middle levels:-Breadth of knowledge global perspective-More innovative-Can-do spirit and motivation for success8Long known for being upbeat and dynamic,the financial services industry will become unprecedentedly fast-evolving.From digital transfor
57、mation,change of expectation from millennial clientele,geopolitical uncertainty to the impact on the post-pandemic era,different developments are urging financial institutions large and small to reconsider their business models and priorities.Whether financial institutions prefer it or not,a plain f
58、act is that the industry will not be segregated and be on its own.The industry will make changes and be changed,through adoption of technology,incorporation of sustainability,and others.Globally,financial institutions are increasingly looking for talents with cross-disciplinary expertise for instanc
59、e,a candidate who possesses solid knowledge in finance and is tech savvy at the same time.These candidates are difficult to recruit,especially when employers often expect proven skills from them.To prepare for the dynamic changes now and ahead,employers are generally more welcoming than before to re
60、cruit staff from outside of the financial services industry.Another approach to cope with the urgent need of talents is through reskilling or upskilling incumbent staff.Our literature review suggests that firms are increasingly willing to devote resources to developing broader capabilities of staff.
61、European players generally see staff training as an investment in human capital,although some Asian counterparts tend to still see it as an expense.Global competition for talents with cross-disciplinary expertiseHong Kong:positive outlook but retaining talent is a challenge Current StatusHong Kong i
62、s one of the leading IFCs and a preferred regional headquarters for many financial institutions Not difficult to recruit a person but the challenge is often about hiring a suitable one who shares the same vision with the firmOnly when the firm cannot find local talents,it will start looking out for
63、Mainland ones and expatriates,who are usually attracted by Hong Kong2022-24 OutlookRemain optimistic about Hong Kong as an IFC and its status as the regional talent hub,but are conscious about the keen competi-tion in Asia and globallyMajority of the financial institutions interviewed Nearly half of
64、 the practitioners feel they are better equipped than others;tertiary students are less confident,considering themselves similar to others.They will stay in/enter the industry because of:-Better career prospects-Better salaries&benefits-Fast-paced,challenging industry culture Survey result indicated
65、Uncertainty ahead?PandemicLeading to uncertaineconomic outlook;remote work couldenhance talent mobilityCost Increasing cost of living adds challenge to expats and Mainland talents in Hong KongEmigrationA few mentioned about potential outflow of some talents,who look for better healthcare/education f
66、or their kids9Hong Kong enjoys a considerable level of diversity in its talent pool.Whether homegrown or attracted from elsewhere,talents in the financial services industry of Hong Kong have been recognised as outstanding and professional.Roles in the industry are mostly filled by the ample source o
67、f homegrown talents;and when there are niche functions that cannot be filled,firms look out to the Mainland and overseas for hiring.Hong Kongs homegrown talents are mostly recognised by their employers as prudent,trustworthy and possessing depth of knowledge.To equip them further for the upcoming ne
68、eds of the industry,C-suites and senior management interviewed tend to expect these talents to be more innovative,adjustable,attentive to the breadth of knowledge.Apart from homegrown talents,Hong Kong has enjoyed success in attracting talents with other diversities.Some multinational financial inst
69、itutions with regional headquarters here have more than 30 nationalities in their Hong Kong-based workforce.Work visa arrangement is generally easy all of the C-suite and senior management interviewed state that they have encountered only minimal,or no,difficulty in applying for visas for their Main
70、land and overseas staff.The relatively low tax rate is a particular appeal to high-earners.The cosmopolitan culture here also makes Hong Kong an attractive place to talents from big cities.In the eyes of employers and recruitersSenior managementMiddle managementJunior/new entrantsGenerally sufficien
71、t,except for some smaller securities firmsTakes time to find a good match,so quite often firms look to promote from within or hire by referralThe increasingly regulated environment in some sectors may frustrate a few who are considering sector-switching.Should plan ahead for successionTrack record;s
72、trategic thinkingStability-Loyalty-Strong understanding of markets (regulations,customer preference)-Strategic planning to drive the company to the right direction-A small minority are not proficient in Putonghua and IT-Willingness to try new innovations and make changesMinor deficiency Firms tend t
73、o go after the top 5%of the talents while the rest are not fully attended.The top 5%,in turn,become more jumpy;the rest may struggle to have their high salary justified as their experience might get expired amid the fast-evolving industry developmentTrack record;execution powerSalaries&benefits;bran
74、ding of company-Multi-tasking and problem-solving skills-Communication skills to exchange ideas with headquarters and stakeholders-Some need better people management skills(to strike a balance between delegation and finishing the job by themselves)-Multi-cultural team-building skillsMinor deficiency
75、 in some sectors,such as-Insurance(which is oft-misinterpreted as hiring only sales agents)-AWM sector(e.g.,fixed income analysts)-Fintech(especially for start-ups)Academic background(in some sectors);and ability to apply what is learnt to workSalaries&benefits;Work-life balance and office culture-S
76、olid knowledge in finance and business administration-Communication and presentation skills-Team spirit-Loyalty some sectors see high turnover-Global perspectives and understanding of Mainland affairs-Can-do spirit and motivation for successGeneral statusEmployers focus onEmployees focus onQualities
77、 possessed(by homegrown)Areas forimprovement(for homegrown)10This rosy picture will generally remain within the next three years.Most of the C-suites and senior management interviewed believe that Hong Kong will continue to be one of the leading IFCs and the ample business opportunities will remain
78、attractive to talents from around the world.That stated,over half of the interviewed admit that the competition is becoming keener-both in terms of the quality of homegrown talents and the attractiveness to expats or Mainland talents.It should not be difficult to recruit a person but the challenge i
79、s often about whether the firm can find a suitable person who shares the same vision.Incumbent and aspiring industry practitioners surveyed are also positive about the industry prospect for the coming three years(see Chart 1).56%of the industry practitioners particularly those in the front office ro
80、les are extremely optimistic or optimistic;while 58%of the tertiary institution students hold the same view.Students are attracted to the financial services industry mainly for its better career prospect,salaries and benefits,as well as the fast-paced challenging culture(see Chart 2).Most of the bus
81、iness students have good faith that their major will help them find a job in the industry,while those from non-business faculties(e.g.,science)look to be less confident.Industry practitionersTertiary institution students4.5%22.5%17.0%50.5%5.5%Extremely optimisticOptimisticUncertainPessimisticExtreme
82、ly pessimistic2.0%18.0%22.0%52.0%6.0%Extremely optimisticOptimisticUncertainPessimisticExtremely pessimisticBase(n=200)Base(n=200)27.0%58.0%20.0%Front office:68.1%Business:72.5%Other faculties:32.7%Business refers to business and economics and finance facultiesOther faculties refers to faculties exc
83、luding business,economics and finance,science and engineeringChart 1:Perceived prospect of financial services industry in Hong Kong in the next 3 years11Chart 2:Reasons for having interest in financial services industryTertiary institution studentsBetter career prospect/development opportunitiesBett
84、er salary and benefitsFast-paced,continuouslychallenging nature of the industryI want to apply what I have learntfrom the related courses in universityA better work life balanceBetter social statusMeaningful work50.5%43.5%36.0%29.5%28.5%25.5%18.5%Base(n=200)Positive perception aside,Hong Kong is not
85、 entirely perfect in the eyes of employers and the workforce.The high cost of living has been an issue,according to headhunters interviewed.Noting also the keen competition for overseas talents by other regional financial markets which are proactive in building their expat communities(for example,th
86、rough organising regular networking sessions to help expats settle in),Hong Kong may need to explore how to enhance its appeal.The social events a couple of years ago drove a small number of expatriates to consider relocation to elsewhere.Nonetheless,lingering influence on the daily operation is min
87、imal for most financial institutions.For example,a couple of C-suites of multinational asset management firm interviewed said they have not had much change in their investment directions because of what happened in Hong Kong,and Hong Kong with stability being seen in recent times.After all,it is pro
88、fit and not politics that they go after;and Hong Kong remains a place for their global operations.What brings more uncertainty to the industry,as most employers cited,is the impact of the pandemic.The pandemic has,positively or negatively,led to a more common adoption of remote work arrangement.That
89、 means,Hong Kong can reach out to a wider group of candidates from different places around the world,whilst the city could also lose its talents to other markets more easily.More worrying is perhaps the uncertain economic outlook in the post-COVID era.A large majority of the C-suites and senior mana
90、gement interviewed have reflected that they tend to be conservative during this period,especially in terms of hiring additional staff.12Incumbent practitioners share the same concern about the uncertain economic outlook more than 44%of the surveyed cite this as a key challenge.Also noteworthy is tha
91、t over a third are concerned about their salary and benefits.Lack of promotion opportunities is also a difficulty encountered(see Chart 3).Chart 3:Key challenges encountered in the current jobUncertain economic outlookSalary or benefits do not meet my expectationLack of promotion opportunitiesLack o
92、f work life balanceInsufficient time/channels for continuouslearning to adapt to fast-changing marketLack of knowledge/skills requiredFail to attain the required qualificationsFail to achieve the sales targetPoor relationship with colleaguesI do not encounter any challenge/difficulty44.5%38.0%38.0%3
93、3.5%25.5%24.0%18.0%14.5%9.5%4.0%Base(n=200)Industry practitioners13Very few investment products are originated from Hong Kong.Operational procedure is also often outsourced to another location where labour cost is more affordable.We need to complete the value chain by also demonstrating expertise in
94、 areas such as portfolio management.Fresh graduates are expected to at least understand what an AWM firm broadly does and how it works.Equities analysts are plenty but not so for fixed income ones.We are paying 20%-30%premium to hire the latter from the peers.Working in the private wealth management
95、 sector requires intelligence the intelligence to understand and present different complex products and trading platforms,and the intelligence to handle emotions and dynamics of different groups of clients(from the older generation to the younger,from one ethnic background to another).As a regional
96、AWM hub,Hong Kong has been strong in and will continue to have an advantage in trading and deal-making.Most of the C-suites and senior management of asset management firms interviewed are keen to recruit and groom fresh graduates but often end up going for experience-hires.While accepting the fact t
97、hat fresh graduates do not have proven skills,the firms would expect at a minimum some proven knowledge from these candidatesabout the workflow and nature of AWM sector.In turn,asset management firms tend to hire the experienced from banking and insurance sectors,or from credit rating agencies,to fi
98、ll their needs.In-house training is usually provided to newcomers to tune their mindset.For example,investment managers previously working in the insurance industry usually adopt a passive asset management strategy and they need to take a more proactive approach in managing portfolio in the asset ma
99、nagement role.Senior management in the sector are abundant,many of whom were trained in leading US and Europe large asset management firms when they were junior.As Mainland Chinese asset management firms are playing an increasingly significant role in the sector,adapting to the different working sty
100、le and culture may become a challenge to these senior management level talents.Even for those foreign-headquartered asset management firms,understanding of Mainland affairs is considered crucial.Almost all of the C-suites at these firms interviewed commonly pointed out that proximity to Mainland Chi
101、na is Hong Kongs key strength as an AWM hub.Wealth Management Connect,as soon as it is launched,will further consolidate Hong Kongs position to serve Mainland AWM clients.Private wealth management and family office business is also considered part of the AWM sector.This segment was more of a mystery
102、 and did not receive sufficient attention until recent years.To better capture the escalating potential brought by(ultra)high-net-worth clients,private banks and family offices are increasing their headcounts pragmatically.They prefer hiring professionals with at least a few years of working experie
103、nce to these sophisticated clients,certain level of exposure matters.Deeper-dive:Current State and Outlook in Asset&Wealth Management14Off-the-job training is sufficient but less so for on-the-jobFrom school to workOn-the-job/in-house training Often seen in large financial institutions which can aff
104、ord the resources More preferred by practitioners surveyedOff-the-job training/self-learning Financial institutions generally subsidise at least a part of the training cost;smaller firms mainly subsidise those related to licensingTertiary education Quality of Hong Kong business schools is well recog
105、nised globally and by employers Fast-evolving industry becomes a challenge to tertiary institutions in updating their curriculum Students surveyed feel the need to enhance their skillsetBefore joining the industryQuite a few tertiary institutions in Hong Kong are world-class:high international ranki
106、ngs aside,it is also not rare to see Hong Kong business school students winning in international business case competitions.Graduates in Hong Kong are generally recognised by employers for the depth of finance and business knowledge acquired.Most of the C-suites and senior management,as well as recr
107、uiters,reflected that graduates from Hong Kong tertiary institutions understand well about financial calculations,theories,etc.They highlight,though,the need to enhance skills to put theories into practical use.This is often a factor for employers to differentiate a candidate from another.More on-th
108、e-job elements are expected to be incorporated into the curriculum so that fresh graduates can start to perform as soon as they report duty at a firm.Meanwhile,educators are increasingly aware of the importance of incorporating on-the-job element,by arranging partnerships between tertiary institutio
109、ns and private enterprises to provide students with internship/apprenticeship opportunities.A couple of professors interviewed share their struggle in keeping the curriculum up-to-date.To launch a new programme or course,it usually takes less than a year of lead time;whereas to launch a new degree,i
110、t has to take more than a year.Although this is already considered efficient and less bureaucratic compared to tertiary institutions in some other developed jurisdictions,it remains challenging for the curriculum to not suffer from some time-lag.Subject to their own initiative,some professors reach
111、out to the industry to understand the latest trends and include some real-life case studies as sharing in class.On the part of the recipients,close to 60%of the tertiary institution students surveyed believe they will encounter some hindrance in entering the financial services industry(see Chart 4).
112、Among them,about 63%feel it is due to their lack of knowledge/skills required;and about half think they fail to attain the required qualifications.15Chart 4:Likelihood of encountering hindrance in the financial services industryLack of knowledge/skills requiredFail to attain the required qualificati
113、onsUncertain economic outlookJob positions do not meet myexpectation(e.g.salary,benefits)Lack of job vacancy62.9%50.9%36.2%28.5%27.6%0.5%15.0%26.5%50.5%7.5%Very likely to encounter hindranceSomewhat likely to encounter hindranceNot sureSomewhat unlikely to encounter hindranceVery unlikely to encount
114、er hindrance58.0%Base(n=200)Base(n=116)Tertiary institution studentsHinderance from entering the industryAfter having considered both the perspectives of employers and aspiring employees,perhaps a short conclusion is that the need for knowledge enhancement exists,but the focus should be more on the
115、breadth(as opposed to the depth)as well as real-life up-to-date application scenarios.After joining the industryContinuous learning is common in the financial services industry.Large financial institutions usually arrange both in-house training,on-the-job training as well as subsidise staff to take
116、off-the-job self-learning courses to keep their staffs industry knowledge up-to-date.Those HR leaders from the large firms interviewed particularly banks and asset management firms do not see material difficulty in finding the right courses for their staff.To the contrary,HRs from smaller firms espe
117、cially those in the securities sector cannot afford granting full subsidy to their staff to take all kinds of training.At most,they can subsidise those courses related to compliance with CPD/CPT requirements.This corresponds to the sharing of professional training bodies that we talked to.Except for
118、 the banking sector(which most,if not all,of the players are relatively large employers),different sectors within the financial services industry see the pattern that smaller firms look externally for staff training while larger firms rely mainly on their internal resources.The merit of the professi
119、onal training landscape in Hong Kong is that each major sector has a dedicated training provider for certifications and licensing-related curriculum,benchmarked or recognised by the respective financial regulators in Hong Kong.Amongst others,in the banking sector,the Hong Kong Monetary Authority wor
120、ks with The Hong Kong Institute of Bankers to introduce a competency framework the Enhanced Competency Framework(ECF)for Banking Practitioners in Hong Kong.In the securities sector,Hong Kong Securities and Investment Institute develops the licensing examinations as approved by the Securities and Fut
121、ures Commission for meeting the competence requirements as responsible officers and/or representatives.The flip side of the coin is that,those staff in the roles that do not require a regulatory license may not know clearly how they should upskill themselves as there is not a route per se to follow.
122、16According to professional training bodies interviewed,the general demand for training continues to increase.Training for senior management is usually preferred to be in the form of conferences,visits(e.g.,to the Mainland cities in the Greater Bay Area),being panel judges in industry awards,etc.to
123、broaden their horizons and develop forward-looking insight.As for junior and middle management,technical/professional skills(hard skills)are usually cultivated through traditional/classroom training(e.g.,certifications,professional qualifications focused).Building on this strong technical foundation
124、,soft skills will come into play to determine who stands out faster than the others.Indeed,practitioners reflect their keen interest in upskilling or reskilling themselves.85%of the practitioners surveyed express interest in doing so,for reasons including maintaining competitiveness,better career pr
125、ospects,higher remuneration,etc.Close to 75%of the practitioners reckon on-the-job training as an effective way;about 61%(predominantly those from the AWM sector)prefer off-the-job approach.However,their interest to upskill/reskill may get hindered by their lack of time,course fee and limited suppor
126、t from employers(see Charts 5 and 6).Chart 5:Practitioners level of interest in upskill/reskill themselvesChart 6:Incentives for and hindrance from upskill/reskillEffective ways to upskill/reskill(%)3.5%11.5%68.0%17.0%Very interestedInterestedNot sureNot interested85.0%74.5%60.5%47.5%On-the-job trai
127、ningOff-the-job training(e.g.through courses,workshops)Self-learning from other channels(e.g.reading free online articles,books)Industry practitionersLack of timeCost(e.g.course fee is too high)Limited support from employerLack of available training programmes in the marketUncertain about reskilling
128、/upskilling directionI am not interested in upskilling/reskilling myself56.5%49.5%41.5%35.5%24.5%0.5%62.0%53.5%52.0%41.5%35.5%34.5%1.5%AWM:50.0%Banking:50.0%Incentives for upskill/reskillHinderance from upskill/reskillMaintaining competitivenessto avoid lagging behind the counterpartsBetter career p
129、rospect/opportunityHigher remunerationTo cope with the fast-changing industry environmentAttaining the respective qualificationsis a mandatory requirementSupport from employers(e.g.training allowance,flexible working hours,etc.)I am not interested in any of the incentives7+yrs of exp.:66.7%Base(n=20
130、0)Base(n=200)Industry practitioners17Robotisation may replace some existing tasks,but can create new needs and new roles tooPre-requisite being that your skills remain up-to-dateWhat Employers&Employees think in commonAreas on trend:Big data,cybersecurity,digital marketingExisting and potential prac
131、titioners are increasingly tech savvy and they are keen to keep their knowledge up-to-dateExpectation Management:misconception that all Fintech roles offer high pay and companies offer lax cultureLost in translation:the ability to translate tech into application in financial servicesUnderstanding re
132、lative/competitive advantage of Hong Kong:project management instead of coding and programmingWhat Will Fintech Mean to Employers and Employees?18Technology is globally an inseparable part of financial servicesThe pandemic is a wake-up call to all financial institutions regarding their level of digi
133、tal fluency,but even before so there were already waves of development within the industry toward embracing of technology.Prior to the pandemic,some smaller firms remained hesitant when it came to the tech agenda partly because of the budget concern,and partly due to worries over replacement of huma
134、n labour.However,ever since the COVID-19 hit,almost every firm has to resort to technology in one way or the other from the simpler layer of remote working arrangement to the more complex one such as remote trading for clients.Truly,over half of the studies in our literature review point out the new
135、 human-machine frontier within existing tasks:robotisation and machine learning are taking up some tedious,repetitive work at firms.Nonetheless,new expectation for products and services also creates job needs and such large-scale growth will likely outweigh the decline in redundant roles.Fintech cov
136、ers a spectrum that will only get broader as application scenarios expand.In the Introduction section,we tried to showcase how far-reaching this Fintech universe is.Whether it is a financial institution considering or conducting adoption of technology,or a tech firm focusing on developing solutions
137、and services for financial industry use roles are being created profusely.Literature review shows that the core hard skills in need include(i)data skills(e.g.,data science,blockchain,data management,etc.);and(ii)cybersecurity.As for soft and generic skills,employers are craving for creativity,agilit
138、y,and analytical skills.From existing and potential employees perspective,company culture and career path are key motivations when they choose an employer.Cross-border working opportunities are also an incentive.Hong Kong:clearer industry positioning and talent needsFinancial institutions vs.fintech
139、 startups Financial institutions Fintech companies/startupsAdoption,in most casesTechnology enhances the provision of financial servicesCorporate culture is universally important Some formality is expected,especially given the industry is highly regulated Along the average pay scale,except for very
140、niche roles which get to be paid higherDevelopment and adoptionHow to provide solutions for different applications application in the context of financial services is one of the examplesMore flexibility in general but hard work matters and one needs to deliver the result;Fewer hierarchies for startu
141、ps Large fintech giants offer high competitive pay sometimes higher than what financial institutions offerStartups have limited budget but emphasise more on being a part of the changeWhat does technology meanCultureRemuneration&benefits19Financial institutions in technology adoptionLike any other em
142、ergence of novel trends,the Fintech journey of Hong Kong needs to experience the fact-finding,or positioning,stage.Larger financial institutions look to have completed this process a significant majority of C-suite and senior management interviewed say their firms are fairly clear about how to deal
143、with digital transformation.While technology keeps evolving,most of these decision-makers have come to a clearer mind that they adopt the technology but not develop it.Some were once wary of the threats that technology can bring but with more successful use cases in place,together with clarified reg
144、ulatory guidance and more tech solutions available in the market,the merits of Fintech,or tech adoption,are being felt.Generally,once these firms have identified certain needs,they will communicate their specifications with external consultants or vendors to see how they can make the solution happen
145、.Meanwhile,smaller financial institutions are also increasingly buying into the advantages of tech adoption.Financial institutions are adopting technology in different aspects,including:Of course,the above is only a part of the technology adoption universe for financial institutions,and there are a
146、multitude of use cases that are and would be in play.What we wish to highlight is that financial institutions now have a clearer plan for their digital transformation or tech adoption journey;and with this,institutions tend to fulfil this by upgrading the overall tech capabilities across different d
147、epartments.Digital transformationFirms are migrating different parts of the business operations from traditional means to more digitalised platforms the use of online meeting tools for client engagement as opposed to face-to-face;the transaction execution process from telephone confirmation to elect
148、ronic one;the use of tablets to present product features to clients and so on.The transformation pace also takes account of client preference.For instance,individual clients at retail banks tend to use online banking services more than corporate clients as it remains a norm for some B2B transactions
149、 to be conducted traditionally in hardcopy format.CybersecurityAs more of the client data and firm information are stored electronically or on cloud storage,data security becomes a prominent issue for financial institutions.Where third-party services are engaged,the compliance requirement would be d
150、ifferent too.Digital marketingGiven the prevalence of digital and social media channels,how a product or service is marketed to clients requires a fairly different strategy from before.Digital marketing is increasingly adopted to convey messages more effectively,pitching target clients in a more imp
151、actful manner.(1)(2)(3)20Some firms especially banks and asset management firms are adding more IT or tech staff to each department(such as frontline and middle offices)so that they can understand the needs of the relevant departments and colleagues who can gradually learn to understand the tech lan
152、guage/jargons.Apart from adding tech staff to existing departments,some large firms also set up a dedicated Fintech team to manage the firm-wide tech-related development directions.For example,a multinational insurance firm has set up an InsurTech team,comprising experienced tech experts from Israel
153、,Shenzhen and Silicon Valley,to plan for the firms innovation strategy.These experts have a fairly different mindset from those with finance background and these new insights are blended into the business setting to make a solution work.Some financial institutions choose to expand their IT departmen
154、t to cover wider functions.In such a department,there are usually the cloud team,the network/security team,the app development/infrastructure building team,as well as the customer services team(e.g.,IT helpdesk).Through the one-on-one interviews and focus group meetings,we have summarised the common
155、ly cited skills as below for reference Tech-related roles in financial institutionsSenior management Solid financial knowledge as the industry is highly regulated Project management skills to keep track of milestones and evaluate performance Business development skills Data governance and cybersecur
156、ity awarenessMiddle management Innovative and have a vision on applying tech to generate profit for the company in the long term Understanding of market trend and on how to utilise technology to maximize efficiency Ensuring compliance with all regulations while developing Fintech strategyJunior/new
157、entrants Passion and interests in the financial services industry Problem-solving mindset Hard skill on data analytics and open source(e.g.,Java,Python),less on visual basics;graduated in Computer Science/Information Technology/Engineering an advantage Communication skills with external parties and
158、vendorsGeneral skills Problem-solving skills Innovative and open to new ideas and challenges Communication skills Technical skills Some knowledge of finance/FinTech related activities Understanding of financial services environment and regulations(including cybersecurity)General skills Problem-solvi
159、ng skills Research skills Innovative and open to new ideas and challenges Communication skills Front and middle office rolesBack office rolesTechnical skills Data management and analysis skills Knowledge of blockchain and cybersecurity Knowledge of frontend(ReactJS,Redux,SaSS,CSS,JQuery,Bootstrap,Re
160、sponsive website design,webpack,NPM)Knowledge of backend(Python,NodeJS,MySQL,Linux,AWS,etc.)Knowledge of AI and machine learning(Apache Spark,TensorFlow,Scikit-learn,etc.)21Encouragingly,the skillset in demand largely aligns with what is perceived by the potential employee group.Chart 7 illustrates
161、what industry practitioners and tertiary institution students perceive as demanded skillset.The Chart also shows what they think they have acquired and the gap to fill.Common areas for improvement include:big data and data analytics;cybersecurity,AI,and blockchain.Chart 7:Perceived demand and supply
162、 of Fintech skillsBig dataData analyticsArtificial intelligenceCloud computingOpen platforms/API architecturesCryptography&cybersecurityDistributed ledger technologies(e.g.blockchain)Mobile technologyBiometrics&identification technologiesDont know/None46.5%41.5%40.0%28.0%23.5%23.0%23.0%14.5%14.0%3.0
163、%Fintech skills practitioners perceived with high demandFintech skills acquired24.0%35.5%24.0%17.0%24.5%22.5%21.5%16.5%14.0%22.5%49.0%57.0%49.0%35.0%38.5%40.0%39.5%33.0%29.0%6.0%Fintech skills to be upskilled/reskilledBase(n=200)2345668927645892Industry practitioners45.5%36.5%34.5%24.5%24
164、.5%23.0%22.5%21.0%17.5%1.0%25.5%14.0%30.0%19.0%19.5%17.5%13.5%14.5%11.0%19.0%48.0%37.5%51.5%33.5%40.5%35.0%34.0%35.5%35.0%4.5%Big dataArtificial intelligenceData analyticsOpen platforms/API architecturesCryptography&cybersecurityCloud computingBiometrics&identification technologiesMobile technologyD
165、ont know/NoneDistributed ledger technologies(e.g.blockchain)2344678919368562Base(n=200)Tertiary institution studentsFintech skills practitioners perceived with high demandFintech skills acquiredFintech skills to be upskilled/reskilled22While different financial institutions are adding hea
166、dcounts for tech-related roles,not many succeed in making successful hires through open recruitment.Larger firms usually are able to offer better pay to attract talents but some of these employers say their pay cannot be comparable to such offered by the Fintech giants.The recruitment difficulty fac
167、ed by smaller firms is more obvious pay aside,the HRs limited understanding of what tech skills to expect becomes a barrier to hire the right person for the role.A few of the recruiters at smaller firms are still seeing Fintech as no different from a mere IT helpdesk.With the difficulty in open recr
168、uitment,firms are seen to hunt talents from the external consultants or vendors they partnered with as these talents know better what the firm needs.That said,financial institutions well understand that this is a short-term solution to tackle the immediate needs;to cope with the larger upcoming need
169、s,some firms are arranging in-house training to upskill or reskill their staff on tech capabilities.But again,resources is an issue.Recruiters and head-hunters interviewed share the same observation.To tackle the immediate needs,a few recruiters acknowledge that it may be more realistic to recruit f
170、inancial talents and expect them to pick up tech knowledge,than to recruit a computer science talent and feed him/her with financial knowledge.At the end of the day,it is more important to understand the implications of tech on business operations than to actually develop/build the tech infrastructu
171、res by themselves.Nonetheless,this does not preclude the possibility of talents from non-business background to seize the tech-related roles in financial institutions.Data related role would particularly be a hot area for these talents to enter the financial services industry most firms are expandin
172、g their team in roles such as data management,big data analysis,etc.For example,a bank would be interested in what behavioural pattern the big data of its clients indicates,thus making corresponding adjustments to its loan product features and sales strategy.Knowledge in computer engineering will pr
173、esent a niche.Given the broad and complicated Fintech taxonomy,non-business background talents can also place more attention to areas that Hong Kong has more potential in for example,payments and blockchain adoption amid the proximity to the critical mass in the Greater Bay Area;digital and crypto a
174、ssets,etc.Thankfully,Fintech-related roles seem to have good appeal to existing and potential practitioners.As shown in Chart 8,more than 60%of the existing practitioners who are currently not in Fintech roles say they will consider switching to the Fintech universe more notably,80%of these practiti
175、on-ers are from the asset and wealth management sector.The talent pipeline is even more promising among the new breeds:more than 80%of tertiary institution students say they will very likely or likely consider starting their careers related to Fintech.To both the practitioners and students,career pr
176、ospect is a key incentive.Better salary&benefits is the second-attractive factor this may be a potential expectation discrepancy which employers should be mindful of,as based on our interviews and focus groups,firms do not look to be prepared to pay significantly more than the average for Fintech ro
177、les.23Chart 8:Preference for starting or switching career to FintechReason for not considering Fintech sectorBetter career prospect /opportunitiesBetter salary and benefitsA better work life balanceFast-paced,continuously challenging natureI want to apply what I have learnt in universityMeaningful w
178、ork52.2%46.0%42.5%38.9%38.1%28.3%Not equipped with sufficient knowledge/skills requiredLimited career opportunities available in Hong KongUnattractive salary/remuneration69.4%36.1%18.1%Base:Those who are not sure/do not consider career in Fintech(n=72)9.2%51.9%26.5%10.8%1.6%AWM:80.0%61.1%38.9%Insura
179、nce:63.0%Reason for considering Fintech sector Base:Those who rate very likely/likely to consider(n=113)Base:Those not working in Fintech sector(n=185)Very likely to considerLikely to consider Not sure Unlikely to consider Would not consider at allIndustry practitionersReason for not considering Fin
180、tech sectorBase:Those who are not sure/do not consider career in Fintech(n=39)Reason for considering Fintech sector Base:Those who rate very likely/likely to consider(n=161)Base:Tertiary institution students(n=200)16.0%64.5%11.0%7.0%1.5%19.5%Business faculty:92.7%Other faculties:40.0%80.5%Better car
181、eer prospect/opportunitiesBetter salary and benefitsFast-paced,continuously challenging nature I want to apply what I have learnt in universityA better work life balanceMeaningful work54.7%49.7%34.2%31.7%28.6%26.7%Not equipped with sufficient knowledge/skills requiredLimited career opportunities ava
182、ilable in Hong KongUnattractive salary/remuneration61.5%38.5%10.3%Tertiary institution studentsVery likely to considerLikely to consider Not sure Unlikely to consider Would not consider at all24What has been covered may still be difficult to understand for those who are not familiar with tech.To ena
183、ble them to better understand how tech adoption is happening in financial services,we wish to bring in some examples in the asset and wealth management context.Technology adoption is generally taking place in these aspects:Technology will facilitate,or replace,some parts of the existing tasks partic
184、ularly such tedious and routine ones as data extraction and entry.International asset management firms are developing robo-advisory services but this is unlikely to be in full functioning like what current financial advisors do.The wide,ever-evolving range of products is a barrier;clients also tend
185、to prefer some off-the-shelf products sometimes,which require a great deal of human-tailored analysis.Also,given that fund companies in Hong Kong at present still heavily rely on distributors(for example banks)to sell their products and only a small portion of transactions are solely done online,rob
186、o-advisors may not thrive unexpectedly fast.According to a C-suite of an international asset management firms,not every employee has to be a tech expert,but a basic degree of savviness is expected.Large asset management firms usually have a team specialising in Fintech;meanwhile,more firms have open
187、ed Head of Digital positions to manage major digitalisation projects and help upskill senior employees,who are usually less tech savvy than new entrants and junior-level staff.It is crucial for the senior and middle man-agement to understand how tech adoption can translate into business opportunitie
188、s or efficiency to the firm.Deeper-dive:application of Fintech in AWM sectorClient user-experience E.g.,online engagement with clients(although it will unlikely lead to a complete replacement of face-to-face engagement);apps/tools development to provide clients with personalised product information;
189、to serve family offices,some bespoke online dashboards are made available to capture real time,holistic data of the families combined assetsProduct development Investment appetite is experiencing a change,from by regions to by themes(e.g.,HealthTech,RegTech,etc.);tech-themed products are also prolif
190、eratingBusiness efficiency and accuracy E.g.,discovering the best executed price through techData middle office E.g.,for generating fund fact sheet and other trade information;on daily operations such as cloud storage and data complianceC-suite,multinational asset management firmTheres no point to p
191、ush every staff to become a tech expert,but at a minimum each is expected to maintain an open attitude to tech development and be familiar with the daily use programmes.Vice President,Risk,Private BankI came from a computer science background and took a professional finance-related qualification.Dat
192、a analysis is perhaps an area that makes me niche Im able to do data mining and perform analysis more efficiently than a business-background person.25InvestHK,Hong Kong:From Startups to Regional Headquarters.https:/www.investhk.gov.hk/sites/default/files/RHQ%20and%20Startups%20Surveys%202019_entc.pd
193、f 6Tech companies giants or start-ups present a fairly different landscape from such of conventional financial institutions.Companies that are positioned to serve or transform the financial services industry are generally called Fintech(or tech-fin)companies.Hong Kong is home to more than 600 Fintec
194、h companies,with a majority of them focusing on the business-to-business(B2B)market.6 These companies leverage technologies including big data,AI,blockchain,InsurTech,RegTech,and WealthTech to serve the business and consumer markets with efficient,convenient and cost-effective products and services.
195、Fintech companies with operations in Hong Kong are of different sizes.Those at the start-up stage are striving to expand and sustain their businesses.With the enhancements introduced to the policy environment,the networking opportunities and business-operating guidance provided by Cyberport and the
196、Science&Technology Park,together with the efforts in the private sector,the Fintech startup ecosystem is developing fast.But like startups in any other markets,they are under a slim budget and tight deadline.While they need labour to operate and deliver results,these startups do not necessarily requ
197、ire,or more realistically are not able to afford,a large team.Every staff matters much so each is expected to have the breadth and depth of skills to contribute.Problem-solving skill is important as the management at a startup cannot afford the time and resources to handhold or spoon feed the junior
198、.The same,if not more,contribution to the firm is expected by sizeable Fintech employers too.Senior and middle management of a Fintech giant are expected to possess rich management experience under both peak and trough of business cycles.They should be proficient in motivating employees to work towa
199、rds a common goal.New entrants at a sizeable Fintech firm do not necessarily possess ultra-advanced level of technical knowledge but they must be prepared for the steep learning curve.In-house training often used for team-building and bringing new ideas to the firms.For example,there is usually a cl
200、osed-door bootcamp orientation provided for new entrants in which they are asked to comment and criticise one of the company products and suggest ways of improvement to the corresponding project manager.Fresh perspectives are a valuable asset.Since most of the Fintech giants in Hong Kong came from a
201、 Mainland background and target to serve the Greater China market,a candidate should possess good understanding of the Mainland market.As a C-suite of a Mainland-headquarter Fintech company emphasises,if a fresh graduate looks to join his company,it is considered a basic to understand the digital wa
202、y of Mainland daily living style.Fintech infrastructure has covered almost every aspect in daily life of a Mainlander,from dining to transport and from online shopping to mobile payment.Without the direct user experience of these apps,it is almost impossible for a staff at a Mainland-background Fint
203、ech firm to survive.Of course,given the different business sizes,Fintech giants are able to offer more handsome salary than Fintech startups,and sometimes even more handsome than what conventional financial institutions can pay.Yet,both Fintech giants and startups commonly point out,it is pivotal to
204、 have the vision than only look at the salary.Most,if not all,of the Fintech companies are established with the vision to make a positive change may it be in the form of efficiency and convenience,or for financial inclusion.If a candidate does not have the passion and share the purpose of work,he or
205、 she will only end up with exhaustion and brain-draining,which whatsoever salary offered cannot justify.Tech firms present a different universe26The so-called hot topics change over time-from payments to credits a few years ago,then now to crypto or digital assets.Each topic requires slightly differ
206、ent tech skills(e.g.,from data analytics to machine learning).With this,it does not mean older topics have less value or become stale it is rather that each and every topic is growing,yet at different pace at different time.A candi-date should consider which area/topic he or she is most passionate a
207、bout,and how to continue to refine and innovate.Although each topic/area may require slightly different tech firms,if a person really is passionate about that area,he or she should be very keen to learn new software language.Most of the C-suites of Fintech giants and start-ups also wish to correct a
208、 common misconception.Some junior staff tend to perceive that Fintech companies have a chill culture in the sense that it does not require much effort to be put in.The chill part is correct,in the way that Fintech companies do generally have more casual working environments.Most firms allow flexi ho
209、urs but at the end of the day what one can deliver matters most.People who aspire to join the Fintech sector are also advised to be clear about their advantages and disadvantages.In an ideal Fintech ecosystem,there should be talents specialising in different areas from coding and programming,to proj
210、ect management and digital marketing.One needs to be mindful though,a large majority of the coding tasks have been outsourced to places such as Guangzhou and India,where the labour cost is about one-third or half of Hong Kongs.In other words,it would be more realistic for one who is interested in pr
211、ogramming or coding to be clear about the fact and know what competition is ahead.A more obvious advantage that Hong Kong-based talents possess is perhaps the outstanding project management skills.For long,Hong Kong people have had the quality of understanding user requirements and pain points then
212、finding corresponding solutions.The ability to understand the dynamics of different stakeholders such as investors and regulators is keenly sought by Fintech companies.27Training landscape:application is keyThe Fintech skillset gap is apparent.While employers are craving for talents to cope with the
213、ir business or digital transformation needs,employees also feel the need to upgrade their tech capabilities.As spelled out in earlier paragraphs,both the incumbent practitioners and tertiary institution students perceive that they need more training to upskill or reskill themselves.In the university
214、 curriculum,we have noted an increasing attention on tech may it be through a dedicated bachelors or masters programme,or through a course with Fintech elements.In this regard,Hong Kong is already relatively more advanced than other developed markets but whether students get to feel the keen interes
215、t in enrolling in such courses is an issue.Among the 88%of students surveyed who say their institutions provide Fintech courses,only 19%have enrolled(see Chart 9).While nearly half say they plan to enrol,we should also see how to motivate the rest.Lack of time,high course fee and difficult curriculu
216、m are the most cited reasons for not enrolling in Fintech-related courses.Some students surveyed also reflect that the curriculum and credit transfer system in tertiary education are not entirely flexible for business-major students to study IT or vice versa.Equally crucial is whether these courses
217、can cultivate the skillset needed for the jobs in the market.Over half of the Fintech companies interviewed tell us that they are expecting more of the application ability from the graduates.These companies are yet to find sufficient candidates who can translate what they have learnt at school into
218、business operations.Chart 9:Enrolment for Fintech coursesLack of timeCourse fee is too highCurriculum too difficultCurriculum impractical/too easyNot interested in FintechDo not consider working in Fintech industry62.0%29.6%18.3%11.3%9.9%5.6%Base:Those who have enrolled/plan to enrol FinTech courses
219、(n=129)Base:Those who do not enrol FinTech courses(n=71)To equip myself for future careerTo grasp basic understanding of FintechInterested in FintechTo fulfill compulsory course credit requirement52.7%48.1%43.4%39.5%Base:n=20019.0%45.5%23.5%12.0%64.5%35.5%Tertiary institution studentsYes,my institut
220、e provides Fintech courses and I have enrolledYes,my institute provides Fintech courses and I plan to enrolYes,my institute provides Fintech courses but I dont plan to enrolNo,my institute does not provide Fintech coursesReason for not enrolling Fintech related courses(%)Reason for enrolling Fintech
221、 related courses(%)28As for industry practitioners,courses available in Hong Kong on Fintech are plenty and the overall quality is good,from practitioners perspective.According to Chart 10,67%of the industry practitioners surveyed think on-the-job training is effective but given the limited human re
222、sources a firm has,this channel perhaps is not easy to achieve.Also preferred is off-the-job training(such as courses,workshops,etc.)64%of the surveyed opt this as an effective training channel.Further,interviewees generally consider Hong Kongs Fintech training programmes better than those in other
223、markets,in terms of practicality,variety,etc.According to an experienced trainer interviewed,backend training is relatively easier to organise by private training institutions computer science background trainers are adequate,but what is lacking is often a real-life platform for practice.Each financ
224、ial institution particularly in the banking sector has its unique platform but the programming skill is transferable.Programming skills can be taught within months or even built up by self-learning,but eventually what matters more is the actual scenario for learners to apply what they learnt by theo
225、ry into practice.67.0%64.0%47.5%On-the-job trainingOff-the-job training(e.g.through courses,workshops)Self-learning from other channels(e.g.reading free online articles,books)Effective ways to improve/acquire new Fintech skills Fintech training programmes/courses available in HK compared with other
226、major marketsPracticalityof programmesVariety of programmesRelevance of contentContent up-to-dateQuality of tutorPrice of programmes6.5%6.5%8.4%3.7%6.5%6.5%9.4%48.6%49.5%48.6%54.2%52.3%56.1%53.3%44.9%43.9%43.0%42.1%41.1%37.4%37.4%Score 8-101234566Base:Industry practitioners who are familiar with cou
227、rses in HK Score 1-3Score 4-7Accreditationsof programmesIndustry practitionersChart 10:Industry practitioners preference for Fintech courses 29What Will ESG Mean to Employers and Employees?ESG per se is cross-disciplinary and so should the mix of talents at financial institutions Regulatory push and
228、 client demand are making ESG mainstreamWhat Employers&Employees think in commonKnowledge of ESG regulations and integrated analysis are hard skills in needCommunication and stakeholder management skills are crucial Gaps to fillInsufficient understanding of ESG and of its implicationsMisconception t
229、hat the talent demand will not increase significantly30Sustainability is relevant and becoming mainstreamFor more than a decade,sustainability started to become a key agenda item among European financial institutions.The wave has then swept the American market;and until more recent years,the momentu
230、m is taking place in Asia due to regulatory push and increasing client demand.There are mounting studies explaining the value proposition of ESG to a financial institution from the perspective of risk management,to risk-adjusted investment return enhancement;from brand building to attractiveness to
231、new source of capital;but ESG-related talent development studies are only a handful.Almost every market is indicating a shortage of talents;and within which,the shortage is most acute in Asia.The areas of skillset that are under acute shortage would be pending exploration.Employers generally feel th
232、eir existing staff lack ESG knowledge but struggle to offer them training because of the limited suitable course options available or because such training is not a(regulatory)requirement.Based on the limited studies in our literature review,we have summarised the key skillsets in need.In terms of h
233、ard skills,baseline technical knowledge,ESG rules and regulations,incorporation of ESG factors into business models are crucial.In terms of soft skills,communication and negotiation skills are key.Financial institutions are open to recruiting candidates with non-traditional backgrounds(e.g.,NGOs and
234、 consultancies)for ESG-related roles.It remains a discovery process for employers to figure out gradually what sort of skillsets they need most.Hong Kong:momentum is piling up and more employers are getting ready to expand ESG rolesHong Kongs success as an international financial centre allows the c
235、ity to enjoy a combination of first-mover advantages in ESG investment initiatives.Owing to its world-leading capability in capital raising,ample risk management experience and solid expertise in serving international financial actors and investors,Hong Kong attracts a wealth of asset owners and ass
236、et managers to explore their ESG investment journey.With green finance being key in the development of the Greater Bay Area,Hong Kongs role in providing financial services support will likely become more prominent.In 2020,green bonds arranged and issued in Hong Kong recorded more than US$12 billion;
237、cumulative green debt issuance amounted to over US$38 billion by the end of 2020.Further,following President Xis pledge for China to be carbon neutral before 2060 is Hong Kong Governments commitment to achieve carbon neutrality before 2050.The financial services industry is,by and large,expecting th
238、e opening up of more business opportunities in relation to ESG for the city,and in the region.In short,the ESG momentum is piling up in Hong Kong;and the next to expect is how firms will expand the scope of their ESG journey,which means increasing the need for related talents.Within E,S,and G,Govern
239、ance is the tranche that has drawn the most attention while Environmental and Social issues are picking up.As an investment director with 10+years of experience in ESG describes,there is this two-tiered understanding of ESG among financial institutions in Hong Kong:the first tier is those global,int
240、ernational investment houses ESG is already on the top of their priority;the second tier is the regional and local ones they are still warming up to the ESG trend and yet to understand the disruptive construction that ESG can bring.As a representative of a professional body remarks,the varying level
241、 of interest may be explained by the developing ESG taxonomy some ESG standards remain inconsistent or unclear.31In turn,some financial institutions are more active than others in terms of hiring.Banks are expanding their ESG workforce comparatively faster the traction mainly comes from the financin
242、g arm of banks in view of regulatory expectation for sustainable banking.Asset management firms also have their ESG force grown fast.Likewise,the asset management arms of insurance firms are also joining the party.For example,a C-suite of a multinational insurance firm tells us that his firm imposes
243、 investment ban on some tobacco projects and sees this good for the business.The philosophy is that,if clients live healthier and longer,they would probably make fewer claims on health insurance,which in turn would benefit the insurance firm.Further,credit rating/analysis firms are increasingly awar
244、e and are recruiting people to develop several models to assess ESG risks or scoring.According to recruiters interviewed,there is some demand for E&S talents and most of such demand comes from large financial institutions and listed companies,while G talents are under more eminent shortage.Demand fr
245、om smaller institutions has yet to arrive.Recruitment of ESG professionals may involve very technical knowledge that not all HR professionals are familiar with.Across the larger employers,ESG team composition is experiencing a shift.Headcounts have mainly been added to middle to back offices,and now
246、 gradually to front office as well.Three years ago,each financial institution added several openings for ESG function and most were filled internally(i.e.,rotating staff from such departments as marketing and group strategy to take up ESG roles)due to limited talents outside.And now,as the ESG ecosy
247、stem has been built up in Hong Kong,there are more candidates in the market to fill in the new roles.Firms go more for external recruits;and the team is usually headed by an overseas expert who has years of ample experience in ESG.Most of the employers emphasise that there is not a definite requirem
248、ent for academic background when they consider candidates.ESG teams comprise professionals from communications,climate change,social issue expertise.It is after all subject to the qualities of individuals and the managements preferences.For example,if the business focuses on real estate sector,it ma
249、y be easier for an environmental or social person to acquire some basic financial knowledge so as to be capable for the role;while if it is for IPO business,it would be easier for a finance-background person to pick up some basic ESG understanding.What matters more than the academic background is pa
250、ssion and global vision.ESG trends are globally impacting each other having the keen interest to keep abreast of the international developments is key.One needs to know how to translate these ESG theories,concepts and developments into actionable agendas/strategies.Other key skills are summarised as
251、 below for reference.32ESG-related roles in financial institutionsSenior management Be visionary and understand the importance of developing ESG Leadership skills and being supportive to lead the change in the companyMiddle management Understanding of ESG-related regulations Communication skill is r
252、equired to deliver messages to different stakeholders(including clients,investors,senior management,etc.)Junior/new entrants Basic knowledge of ESG and a sense of sustainability Coordination skill across different initiatives,events,stakeholder engagements Report-drafting skillsGeneral skills Proble
253、m-solving skills Ability to combine specific technical skills and knowledge with an understanding of business processes,practices and cultures Technical skills Baseline technical knowledge (e.g.,what is the structure of the ESG ecosystem,how is ESG performance measured)Capable of structuring sustain
254、able products from both a customer,business and wider stakeholder perspective Skill to assess suitability of sustainable products Understanding the financial and sustainability of any green financial instruments,specifically Green bond,Green loan and Green fundFront and middle office rolesGeneral sk
255、ills Research skills Analytical skills Communication skills Back office rolesTechnical skills Knowledge of green and sustainable,including the latest issues and finance regulations Familiarity with major ESG indices,rating and/or other scoring mechanisms Understanding of reporting standards Integrat
256、ion of climate-related risks in equities/bonds/government bonds33How ESG is incorporated into the business operations and decision-making process covers a wide spectrum.It is making an impact in different streams within the AWM sector.Most of the international or regional AWM firms in Hong Kong alre
257、ady have their responsible investment policies in place either to respond to regulatory expectation or client request.Some are considering setting up a dedicated team to look into ESG matters or adding headcounts for ESG-related roles.ESG,or sustainability,is not merely a short-term theme but is a t
258、rend that is going to stay.According to the C-suite of international asset management firms,they are taking a two-facet approach.On the one hand,they are hoping to cultivate the sense of sustainability across different staff as ESG practice should be viewed more holistically for risk management purp
259、oses and others.On the other hand,they are creating headcounts.They used to rotate people to serve the ESG function from within,but as ESG is becoming mainstream,this cannot be a long-term solution.Headcounts become more formalised;and open recruitment becomes the practice.The expansion for now is n
260、ot aggressive,but most of them foresee the talent need will continue to increase.A couple of senior management one at a European-based capital investment firm and the other at a pension fund advised young talents to start planning their ESG career early,if they feel the passion and interest.Currentl
261、y,middle to senior ESG roles are mostly filled by Europeans or Americans,due to the lack of talents in Asia.They foresee,the Mainland China market will present tremendous career opportunities and business opportunities in the coming few years regarding ESG.Hong Kong talent should seize the geographi
262、cal advantage.Deeper-dive:application of ESG in AWM sectorInvestment management E.g.,formulation and review of scenario analysis with ESG factors taken into account;internal product design and due diligence(e.g.,green bonds,ESG-themed funds,etc.)Research and StrategyE.g.,conducting market intelligen
263、ce and research to understand latest ESG developments,such as carbon-reduction project prospect;conduct benchmark analysis to compare the firm with other peers in terms of ESG practicesTransparency&disclosureE.g.,sustainability risk reporting to fulfil fiduciary duty and regulatory requirement;defin
264、ing key performance indicators based on internationally recognised ESG guidanceAwareness and sense of sustainability E.g.,employee training and client educationPartner,International Pension InvestorSell-side,asset management firms and investment banks are creating new roles for ESG.ESG are essential
265、ly separate segments and each requires dedicated background,yet together a mix of diversity.Vice President,Asset Management,International Banking GroupThere is not a clear cut regarding the background.I came from the Mainland with sustainability background;while my team comprises professionals from
266、abroad and Hong Kong,with business,communications,social science backgrounds,etc.34Understanding among practitioners has room to improveAs explained earlier,the demand for ESG talent has been a global phenomenon and is becoming a key trend to embark on in the coming three years.Noteworthy is that in
267、cumbent and aspiring practition-ers only have some fair understanding of the ESG job market.Only 14%of existing practitioners and 0.5%of tertiary institution students reckon they have ample understanding of the job market(see Chart 11).Interestingly though,despite the limited understanding of the ma
268、rket,46%and 61%of practitioners and students,respectively,say they may consider having their careers in the ESG field(see Chart 12).Chart 11:Understanding of ESG job market in Hong KongChart 12:Preference for starting or switching career to ESG sector2.5%13.5%34.0%36.0%14.0%Ample understandingSome u
269、nderstandingFair understandingLittle understandingNo understanding5.0%14.0%38.0%42.5%0.5%Ample understandingSome understandingFair understandingLittle understandingNo understanding16.0%50.0%43.0%19.0%Base:n=200AWM:30.0%7+yrs of exp.:25.8%Insurance:47.8%Business:62.4%Other faculties:54.5%Tertiary ins
270、titution studentsBase:n=200Industry practitionersBase:n=200Better career prospect/opportunitiesFast-paced,continuously challenging natureI want to apply what I have learnt in universityMeaningful workA better work life balanceBetter salary and benefits53.3%42.4%42.4%40.2%38.0%33.7%Limited career opp
271、ortunities available in Hong KongUnattractive salary/remuneration63.9%40.7%29.6%Base:Those who rate very likely/likely to consider(n=92)Base:Those who do not consider career in ESG(n=108)6.5%39.5%36.0%16.5%1.5%AWM:70.0%Front office:58.3%46.0%54.0%Reason for not considering ESG sector field(%)Reason
272、for considering ESG sector field(%)Not equipped with sufficient knowledge/skills requiredIndustry practitionersVery likely to considerLikely to consider Not sure Unlikely to consider Would not consider at all35Base:Tertiary institution students(n=200)Better career prospect/opportunitiesBetter salary
273、 and benefitsMeaningful workA better work life balanceFast-paced,continuously challenging natureI want to apply what I have learnt in university47.2%35.8%30.1%30.1%29.3%24.4%Not equipped with sufficient knowledge/skills requiredLimited career opportunities available in Hong KongUnattractive salary/r
274、emuneration62.3%48.1%19.5%5.0%56.5%25.5%11.0%2.0%Business:73.4%61.5%38.5%Other faculties:50.9%Tertiary institution studentsBase:Those who rate very likely/likely to consider(n=123)Base:Those who do not consider career in ESG(n=77)Reason for not considering ESG sector field(%)Reason for considering E
275、SG sector field(%)Very likely to considerLikely to consider Not sure Unlikely to consider Would not consider at allThe limited understanding of the ESG job market also goes hand in hand with the related skillset that practitioners and students think they possess.The general level of ESG skills they
276、possess is not high.In plenty of areas including knowledge of ESG frameworks and regulations,data science applications to ESG investing,reporting and disclosure,etc.practitioners and students consider they face the need to upskill or reskill(see Chart 13).Chart 13:Perceived demand and supply of ESG
277、skills38.0%35.0%29.5%28.0%28.0%25.0%24.5%20.5%5.5%28.5%20.0%27.0%34.0%20.0%25.0%21.0%21.5%15.5%45.0%48.5%41.5%40.5%43.5%44.0%38.5%39.5%7.0%ESG skills practitioners perceived with high demandESG skills acquiredESG skills to be upskilled/reskilledBase(n=200)Knowledge of ESG frameworks and regulationsD
278、ata science applications to ESG investingIntegrated financial and nonBaseline technical knowledgeDedicated ESG(non-financial)analysis of an organization or an assetDesign of ESG productsInternal governance/oversight rolesDont know/NoneReporting and disclosure to support increased transparency2344678
279、643872Industry practitioners3639.5%38.0%29.5%29.0%25.5%25.0%20.5%18.0%4.5%21.0%21.5%20.5%17.5%21.0%15.5%23.5%20.0%18.0%49.0%44.0%40.0%41.0%42.5%38.0%44.5%34.0%6.5%ESG skills practitioners perceived with high demandESG skills acquiredESG skills to be upskilled/reskilledBase(n=200)Tertiary
280、institution studentsKnowledge of ESG frameworks and regulationsData science applications to ESG investingDesign of ESG productsBaseline technical knowledgeDedicated ESG(non-financial)analysis of an organization or an assetIntegrated financial and non-financial analysisInternal governance/oversight r
281、olesDont know/NoneReporting and disclosure to support increased transparency2345678643872This then leads to the question as to whether the training options available in the market now are sufficient.At the university level,there are some but not many courses in the curriculum that cover g
282、overnance,even fewer on sustainability.The professors interviewed explain to us that this is mainly because they do not see keen interest from students in these courses.Unlike areas such as Fintech which fosters collaboration between faculties(e.g.,computer science and business schools),this cross-d
283、isciplinary area ESG does not face the same.The environmental part of ESG is mainly taught in environmental science courses while a few business courses are also adding ESG contents in their curriculum.Most emphasise on business ethics.As for training for practitioners,the landscape remains fragment
284、ed.Professional bodies are organising their respective seminars and conferences on ESG for example on latest amendments on Listing Rules regarding ESG.Joint efforts are not apparent.37Recommendations:Groom,Retain and AttractUndergraduatesOverallFintechESGJunior Middle to senior management#1:To devel
285、op and update the core competency map for different sectors#2:To coordinate and evaluate internship and apprenticeship programmes#4:To incentivise private Fintech enterprises to participate in curriculum development and application#5:To introduce ESG courses as compulsory learning in finance-related
286、 disciplines#3:To facilitate Hong Kong professionals over seas and Mainland placement through subsidy support#6:To expand CEF reimbursable courses to cover more professional training in Fintech and ESG1.To develop and update the core competency map for different sectorsWhile the industry is confiden
287、t that Hong Kong is and will continue to be supported by a sustained pool of financial talents,some are aware of the keen competition from the neighbouring financial centres.7 Employers small in size in particular usually can afford tackling only the current hiring need and yet to plan ahead for the
288、 future;junior and aspiring entrants rely more on information available freely on the internet and internship experience to paint a rough picture about what to expect and be expected.Meanwhile,tertiary and professional training institutions are,by and large,followers of the industry trends when or a
289、fter such have arrived.This is the reality faced not only by Hong Kong,but also by other financial centres.For a more holistic planning of talent development,Hong Kong needs a core competency map,covering different sectors within financial services.To date,some sectors have clearer competency framew
290、orks than others for example,Qualifications Framework(QF)launched by the Education Bureau covers banking and insurance sectors,amongst other non-financial-services ones such as catering and fashion.For banking and insurance sectors,the QF laid out in detail the competencies needed in various functio
291、nal areas within the sector ranging from the knowledge in the subject area,the applications,to the professional attitude expected.Professional qualifications for the banking and insurance industry are also recognised under the QF.However,such specifications of competencies are not available for othe
292、r key financial services sectors,such as asset and wealth management.For instance,see FSDCs paper published in February 2020,Hong Kong as the Regional Wealth Management Hub Sector Survey Paper.738Apart from the width of coverage,timeliness of the content is equally crucial.Some sub-sectors have expe
293、rienced changes in work patterns and expectations over time.For instance,private wealth management used to be the overarching category but now has expanded to different tranches(e.g.,family offices)which can individually stand solid on their own.These changes prompt the need to keep refreshing the c
294、ore competency map,where available,so that different relevant stakeholders can refer to from time to time.In fact,what the QF is offering has provided a sound foundation and for the industry to benefit further,it is hoped that Industry Training Advisory Committees(ITACs)set up by the Education Burea
295、u can consider widening the QF scope to cover other sectors within financial services and update it on a regular basis.8 To make the content even more easily digestible by readers,the use of interactive tool with progressing routes and guidance can be an option to consider.References can be drawn fr
296、om the Skills Framework for Financial Services developed by the Institute of Banking&Finance Singapore et al.9 With a full-embracing,updated core competency map,incumbent and aspiring practitioners can more easily develop necessary capabilities throughout different stages of their careers in Hong Ko
297、ng;also,training institutions can better plan and implement their curriculum.2.To coordinate and evaluate internship and apprenticeship programmesWith a well-functioning internship and apprenticeship mechanism,companies can recoup their investments over time by enjoying lower recruitment cost and a
298、better skill and cultural fit,if interns/apprentices are hired for regular employment upon their graduation.Each year,the financial services industry of Hong Kong provides no fewer than hundreds of internship and apprenticeship positions privately or publicly run,of varied tenures and natures.The am
299、pleness of such programmes,to a certain extent,demonstrates the value of internships and apprenticeships to the firms;but,at the same time,one may question as to whether all of these offerings are necessarily effective or,how one differentiates from the other.For private sector-run programmes,indivi
300、dual companies may have their respective parameters to evaluate the value of interns and apprentices to them.As with the programmes run solely or jointly by the Government(or its agencies),it may present further room for a more organised structure in coordination and evaluation.With reference to Ger
301、many,which has a proven track record in its cost-effective apprenticeship system,an important feature in the system is the quality assurance mechanism coordinated by qualified“competent bodies”.10 Accordingly,the company that offers the apprenticeship programmes needs to prove its suitability as a t
302、raining place,elaborate an in-company training plan for each apprentice,and assure that the apprentice keeps a record book,amongst others.On the part of the“competent body”that coordinates the programmes,it is expected to maintain a register/directory of apprenticeships,supervise training and retrai
303、ning preparation,inter alia.Equally important are the employers satisfaction with the programme and the apprentices incentives to enter and complete the programme.ITACs,set up upon industry or sector basis,are platforms for stakeholders to put the QF into implementation and to exchange views on the
304、training needs and manpower development for respective industries or sectors.As one of their primary tasks,ITACs have been formulating new and updating existing Specification of Competency Standards(SCSs)as well as developing Vocational Qualifications Pathways(VQP)for selected job streams to ensure
305、the QF is align with the latest requirements of regulatory bodies and keeping in pace with the fast-changing business environments.Skills Framework for Financial Services,jointly developed by Skills Future SG,Monetary Authority of Singapore,Workforce Singapore and the Institute of Banking&Finance Si
306、ngaporeILO Toolkit for Quality Apprenticeships Volume I:Guide for Policy Makers,International Labour Organisation(October 2017)According to the Toolkit,Germany has tasked certain competent bodies to monitor the in-company training.The Chambers of Commerce and Trade and the Chambers of Skilled Crafts
307、 supervise the majority of dual training carried out in the country.891039It has taken decades for the German system to mature to its current state;and of course,one should not expect such could be replicated overnight.Nonetheless,the German experience can serve a useful lesson for Hong Kong in enha
308、ncing its internship and apprenticeship programmes.At the outset,the Financial Services and the Treasury Bureau(FSTB)may consider being the coordinator,or delegating a body,to systematise the offerings of the internship and apprenticeship programmes in the financial services industry that are run so
309、lely or jointly by the Government(and its agencies).For better allocation of resources,the coordinator is expected to maintain a record of all related offerings and monitor their respective effectiveness.For those programmes that involve the participation of private financial institutions,the coordi
310、nator should devise a framework for these institutions to demonstrate their commitment prior to the programme commencement(e.g.,having the institutions to design training plans for interns/apprentices based on the latest operational needs).Upon completion of the programme,the coordinator should foll
311、ow up with the respective financial institutions on their level of satisfaction(e.g.,through parameters such as how many interns/apprentices dropped out or are retained for regular employment;and the related justifications).To encourage the private sector to participate in the coordinated internship
312、 and apprenticeship programme,FSTB may consider providing subsidies to participating employers up to 75%of the honorarium paid to interns,as in line with other talent cultivation initiatives including the Pilot Programme to Enhance Training for the Insurance Sector and the Asset and Wealth Managemen
313、t Sector.3.To facilitate Hong Kong professionals overseas and Mainland placement through subsidy supportThe need for international exposure will become more eminent in the years to come,according to our interviewees.In addition to the depth of knowledge,firms are expecting their staff to be armed wi
314、th better breadth of knowledge particularly,in terms of their global and Mainland perspectives.In Hong Kong,the international experience or exposure of senior management is up to a standard.According to IMD World Talent Ranking 2020,Hong Kong was ranked the 4th globally in this regard.Plenty of the
315、C-suites at financial institutions in Hong Kong either have the experience studying or working overseas11;it is also common that they were,at some point,trained in the European or the US styles through taking up different international assignments over the years.As the global financial markets becom
316、e more intertwined and to prepare Hong Kong better for a sustained pool of corporate leaders,it is crucial to ensure the successors are equipped with sufficient understanding of the latest international landscape.In order to navigate the changing international environment where non-local stakeholder
317、s,politics,cultural differences and others will increasingly impact business outcomes,professionals who aspire to become future leaders should be given adequate opportunities to update their international exposures.According to the 2019 statistics by Robert Half,almost nine out of ten of Hong Kongs
318、CEOs possessed experience working outside of Hong Kong in places including Mainland China,the US,the UK and Australia.1140To this end,we recommend the FSTB to consider launching an Internationalised Talent Programme,under which Hong Kong financial institutions can tap subsidy support(for rental and
319、insurance expenses,for instance)to offer their local staff placement opportunities outside of the city.References can be drawn from the Greater Bay Area Youth Employment Scheme announced by the Chief Executive in the 2020 Policy Address which aims to support young people to work in the Greater Bay A
320、rea and help them understand the latest developments of Mainland China.Under this proposed Programme,company participants must have clearly crafted job scopes and development plans with significant overseas exposure devised for the eligible staff,say with at least 3 years of working experience in th
321、e industry.To qualify for the Programme,staff participants should be required to commit to returning to Hong Kong for work for a period of time after the placement.A repayment of overseas placement costs clause could be added to the Programme contract and staff participants would be subject to penal
322、ties and have to repay all costs incurred where such commitment is not honoured.It is hoped that,through the Programme,these professionals can gain a wider diversity of experience,thus preparing them for more senior roles at multinationals.As a start,the Programme can be operated on a pilot basis,fo
323、r a tenure of six to nine months,so as to assess the effectiveness and control the budget.Placements can focus on markets which the company has established or plans to expand presence in,including the Mainland markets such as the Greater Bay Area or the overseas markets such as London and Luxembourg
324、.4.To incentivise private Fintech enterprises to participate in curriculum development and applicationHong Kong,as the premier fundraising centre globally,provides a billion-dollar exit platform for tech firms to be acquired or publicly listed.The citys financial infrastructures,business environment
325、 and other attributes have become increasingly appealing to tech(including Fintech)enterprises to operate or even be headquartered in Hong Kong.These firms are the attractive employers who absorb a large number of our tertiary graduates every year.That stated,it is important that our graduates remai
326、n competitive and outstanding globally in the eyes of these employers.When asked how our graduates can stand out among the peers,most of the Fintech employers interviewed highlight the importance of the candidates ability to apply what is learnt at school to the actual work context.The same observat
327、ion was shared among some professors interviewed.Although educators usually take the initiative to reach out to the industry to learn about the latest trends,this is not entirely comparable to the helpful,direct input from the industry practitioners themselves since the Fintech landscape is evolving
328、 every minute.After all,it is the firms per se which know best what skillsets and calibres they look most for from the candidates.This important ability can best be boosted if private Fintech enterprises and practitioners can be given a bigger role in the design of relevant tertiary education curric
329、ulum.41In this connection,we recommend the University Grants Committee(UGC)to advise its funded universities to consider adding private sector participation into Fintech-related curriculum design.The proposal for encouraging the private sector to offer more placement/internship opportunities for stu
330、dents is well aligned with the UGCs belief that experiential learning,particularly the opportunities for gaining hands-on experience outside classrooms,would enrich the overall quality of learning experience.While we appreciate the UGCs effort in encouraging and subsidising local students for pursui
331、ng further studies in Fintech under the Targeted Taught Postgraduate Programmes Fellowships Scheme(TPgFS)and that the UGC has long cherished academic freedom and reserved a great deal of liberty for UGC-funded universities in their curriculum development,the expected outcome of such a recommendation
332、 that is,a higher degree of practicality and applicability in the curriculum can benefit both educators and students even further.While there are already a number of self-financed Fintech master programmes taught by experienced practitioners,universities may consider extending the practice to underg
333、raduate courses.Seasoned practitioners can be invited to participate in the curriculum design and,where appropriate,in the teaching process.The pressure of having insufficient number of qualified Fintech teaching staff available could also be relieved by allowing higher involvement of the private sector.12Of equal importance is how private Fintech enterprises can be motivated to participate in suc